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At aimple interest a sum become 6/5 of i...

At aimple interest a sum become `6/5` of itsself in`2(1)/(2)` years. The rate of interest per annum is

A

`6%`

B

`7.1/2%`

C

`8%`

D

`9%`

Text Solution

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The correct Answer is:
To find the rate of interest per annum when a sum becomes \( \frac{6}{5} \) of itself in \( 2 \frac{1}{2} \) years, we can follow these steps: ### Step 1: Understand the given information We know that the amount becomes \( \frac{6}{5} \) of the principal (P) in \( 2 \frac{1}{2} \) years. This means: \[ A = \frac{6}{5} P \] Where \( A \) is the total amount after the interest is applied. ### Step 2: Calculate the simple interest (SI) The simple interest can be calculated using the formula: \[ SI = A - P \] Substituting the values we have: \[ SI = \frac{6}{5} P - P \] To simplify this, we can express \( P \) as \( \frac{5}{5} P \): \[ SI = \frac{6}{5} P - \frac{5}{5} P = \frac{1}{5} P \] ### Step 3: Use the formula for Simple Interest The formula for simple interest is given by: \[ SI = \frac{P \times R \times T}{100} \] Where: - \( SI \) is the simple interest, - \( P \) is the principal amount, - \( R \) is the rate of interest per annum, - \( T \) is the time in years. ### Step 4: Substitute the known values into the formula We already calculated \( SI = \frac{1}{5} P \) and \( T = 2 \frac{1}{2} = \frac{5}{2} \) years. Now substituting these into the formula: \[ \frac{1}{5} P = \frac{P \times R \times \frac{5}{2}}{100} \] ### Step 5: Cancel \( P \) from both sides Assuming \( P \neq 0 \), we can divide both sides by \( P \): \[ \frac{1}{5} = \frac{R \times \frac{5}{2}}{100} \] ### Step 6: Solve for \( R \) Now, we can rearrange the equation to find \( R \): \[ \frac{1}{5} = \frac{5R}{200} \] Cross-multiplying gives: \[ 200 \times 1 = 5R \times 5 \] \[ 200 = 25R \] Now, divide both sides by 25: \[ R = \frac{200}{25} = 8 \] ### Step 7: Conclusion The rate of interest per annum is: \[ R = 8\% \]
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